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How Europe Rules the Digital Economy

Europe is not home to any of the major tech firms, but it shapes digital governance worldwide, owing to the size and attractiveness of its market. Whereas American-style techno-libertarianism and Chinese digital authoritarianism have both come up short, the European Union's regulatory approach has emerged as a global gold standard.

NEW YORK – Today’s “tech war” is often portrayed as a contest for digital dominance between just two powers: China and the United States. The US is home to the world’s most powerful and profitable tech companies – including Apple, Amazon, Google, Facebook, and Microsoft, whose combined market value exceeds $5 trillion. China has the telecommunications titan Huawei, the Internet and gaming giant Tencent, and the world’s largest e-commerce retailer, Alibaba. Without its own search engine rivaling Google or a social-media platform comparable to Facebook, Europe might look like it is sitting on the sidelines of the digital economy.

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